Pepsi

PEPSI COLA

Introduction:

Pepsi Cola started in the January 1898, from a small Drug store in the city of North Carolina. The owner of the Drug store, Mr. Caleb Bradham, prepared a drink, which the customers called “the Bred Drink”. Bred registered this drink with the name of Pepsi Cola in 1903. Then he started his own production at Marco level and established his own company. The business expanded and this drink got fame time. In 1909 this company reached to 24 states of America with more than 250 dealers. The very first packing of Pepsi was in 16.5 ounce.

In 1932 Pepsi cola has introduced its new packing in 12 ounce. In 1950 Pepsi Cola has started its new Advertising Campaign with the name of “Refresh without Filling”. It also changed the chemical formula and decreased its sweetness and calories.

With the efforts of the Sales & Marketing Department, Pepsi got so much fame that it established new plants at a rate of thirty per annum. In 1985 the design of the bottle has been changed after 20 years. And a new and attractive packaging has been offered with two new flavor i.e., Teem & Mirinda.

Today Pepsi is available in more than 160 countries of the world including Soviet Union & China.

HISTORY OF PEPSI COLA:

2001
Pepsi puts “a little twist on a great thing,” introducing lemon-flavored Pepsi Twist and Diet Pepsi Twist. The product launch marks the return to lemon-flavored colas for Pepsi, which distributed Pepsi Light until the mid- 1980s. Colombian singing sensation Shakira stars in a series of new commercials for Pepsi just as her debut English-language album hits stores in the U.S. At the same time, Pepsi agrees to sponsor the Latin pop star’s worldwide concert tour. Pop superstar Britney Spears appears in her first Pepsi commercial during the 2001 Academy Awards. The high-energy spot also runs online, where more than 2 million fans click their way to Britney’s own version of “The Joy of Pepsi.” Also Ricky Martin and Robbie Williams signed for Pepsi.

2002
In December, American music and film sensation Beyoncé Knowles joins the Pepsi family. The company introduces Pepsi Blue. A fusion of berries with a splash of cola, the blue-hued soft drink is created by and for teens. Pepsi-Cola becomes the official soft drink sponsor of the National Football League in U.S. Supermodel Cindy Crawford unveils new Diet Pepsi graphics during the March Academy Awards telecast. The new packaging features a bubbly blue background that reflects the brand’s light, crisp, refreshing qualities. Cindy’s commercial also helps introduce a new Diet Pepsi tagline, “ Think Young. Drink Young.”

2003
Pepsi-Cola unveils a new advertising campaign, “Pepsi. It’s the Cola,” which is the brand’s first major campaign shift since 1999. The new campaign highlights the popular soft drink that goes with everything from food to fun. Pepsi launches the biggest outdoor campaign in Australian history. Featuring aspirational local talent: Holly Valance, Harry Kewell and Chloe Maxwell. In Europe Pepsi launche campagne “OK Corral” with football players.

2004
Pepsi launches two biggest new campaigns: “Dare for more” with appearance of Beyonce, Britney, Pink and Enrique Iglesias, and “Foot battle” featuring greater football talent: David Beckham, Roberto Carlos, Francesco Totti, Ronaldinho, Raul, Quaresma, Diego Cunha, Fernando Torres and Van de Vaart.

Shamim & Co. (Pepsi Cola)

INTRODUCTION:

Shamim & Co. (Pvt.) Ltd. was established in 1964, Shamim & Co. is a franchise of Pepsi Cola International Which deals in CSD (Carbonated Soft Drinks). Pepsi Cola International have 9 (nine) Franchises all over Pakistan. Shamim & Co. (Pvt.) Ltd. Jail Road Multan in one of them covering 18 District & 135 Stations.

Shamim & Co. Multan has very committed staff and this is the reason that it captures More than 70% share of market share.

Company has now serviced new experienced & competent sales staff & increases this share form 70% to 80 or 90%.

As for as Distribution / Placement is conserved company has a very well- establish distribution network covering whole of the franchise areas.

Depending on the potential of the town we have one and more than one distribution in each town. Sale supervisor / Sale officer is responsible for all the activities of that distributor. He looks after the stock availability, contingencies and all the routes covered by the salesman of that distribution. Salesman training is also a main responsibility of sale supervisor.

Company has invested too much money in shape of Coolers, Visi Coolers , Counters and Cabin.

Which are offered to those shops which are producing good sales to promote sales & oblige these shops?

All the services matters of coolers and maintenance and look after of these assets are also the responsibility of our sales force.
Every salesman in the distribution network is covering a specified area in which all the points and shops are listed in a “Route Card” salesman is bound to fill that

Route Card with the sales figures of every point on that specified day.

MAJOR COMPETITOR:-

Pepsi Cola major competitor is Coca Cola in all over the world,

About Coca Cola:

Mission of Coca Cola international is “From our heritage to our mission to the people who bring our products to thirsty consumers, the Coca Cola is a part of lives everywhere”.

In order to achieve this mission, we must create value for all the constituents We serve, including our consumers, our customers, our bottlers and our communities.

The Coca Cola company creates value by executing a comprehensive business strategy guided by six key beliefs;

Consumer Demand drives every thing we do.
Brand Coca Cola is the core of our business
We will serve consumers a broad selection of the nonalcoholic ready to drink beverage they want to drink throughout the day.
We will be best marketers in the World.
We will think Globally and act Locally.
We will lead as a model corporate citizen

Objective of our business strategy are to increase volume, expand our share worldwide nonalcoholic ready-to-drink beverage sales, maximize our long term cash flows and create economic value added by improving economic profit.

Strategic Marketing:-
The Coca Cola Company versus PepsiCo

Market Share:

Pepsi-Cola ranked as the second -best selling soft drink in American supermarkets in 2000. A consistent runner-up to Coca-Cola Classic, Pepsi- Cola was joined by three other PepsiCo products in the year 2000 rankings – Mountain Dew, Diet Pepsi and Caffeine-Free Diet Pepsi.
Pepsi Coranked second in American CSD market share to the Coca-Cola Company, holding 31.4% during the same year. Coca-Cola Classic outsold all soft drinks in America during the year 2000, netting over USD$ 2 Billion at the cash register. The Coca-Cola Company maintains the CSD market as its primary line of business. With subsidiaries located throughout the globe, Coca-Cola is easily able to dominate the Global CSD market.

In the year 2000, Coca-Cola generated only 29% of its operating income in North America, representative of its large volume of international sales.4 inversely; PepsiCo maintains lines of business in both the CSD market and the snack foods market.

According to the Beverage Marketing Corporation (BMC), Coca-Cola has held command of over half of the world’s CSD market since 1998. On a brand-by-brand scale, Coca-Cola took five of the top seven spots globally in 1999, with standard-bearer Coca-Cola holding a 28.6% share of global CSD volume. Pepsi-Cola was in second place with a 10.8% share, while PepsiCo’s Mountain Dew placed sixth in terms of global Volume.

Table : 2003 Market Share

Pepsi Cola Coca Cola
Market Share 31.4 % 44.1 %
No. of Countries 160 200
Variety of Product Large Large
Target Market Youth General
Strategy Focus Diff. Differentiation
Diversification Related Related

Market Penetration:

It is the shared goal of PepsiCo and Coca-Cola to increase the overall global consumption of their products. Kotler and Armstrong contend that improvements in advertising, prices, service and selection can increase repeat purchases and attract new consumers 7. In an attempt to increase market share during the famous “Cola Wars” of the 1980’s and 1990’s, PepsiCo initiated the “Pepsi Challenge” advertising campaign. Without changing their product, Pepsi temporarily enjoyed a heightened market share and began to penetrate further into the competitive American CSD market.

Coca-Cola responded with several attempts to counter the effects of Pepsi’s successful new marketing strategy. In late 1986, Coca-Cola renamed its top-selling CSD “Coca-Cola Classic” and launched a corresponding global advertising campaign. The success of Coca-Cola Classic has been based largely on the integrity of Coca-Cola’s original formula. Brand loyalty and insistence drive a large portion of the CSD market, and Coca-Cola has the advantage with their century-old formula.

In the 1990’s, Pepsi shifted their focus to the growing American teenage market. PepsiCo adopted a new marketing strategy which aggressively marketed through high school and college campuses. PepsiCo began selling contracts of exclusivity to hundreds of American schools, benefiting many schools with needed monies, and providing PepsiCo a direct link to American teenagers. While Coca- Cola has adopted a similar method of obtaining exclusive selling power, PepsiCo has followed up with various aggressive advertising campaigns using popular American teen icons to promote Pepsi products.

“The next generation” motto was replaced with “Joy of Pepsi” and “For those who think young,” targeting not only American youth, but the youthful mindset of every consumer. Pepsi continues to use teen and child icons to promote their products, while Coca-Cola has latched onto the remaining Baby-Boomer market. Through product placement and exclusivity contracts with restaurants, sports arenas, amusement/theme parks and various large event coordinators,
Coke has been able to increase their overall visibility to counter

Pepsi’s latest marketing strategies.

Speaking on the success of PepsiCo’s aggressively competitive marketing strategies, PepsiCo Chairman/CEO Roger Enrico writes:

“Without Coke, Pepsi would have a tough time being an original and
Lively competitor. The more successful they are, the sharper we have to be. If
the Coca-Cola Company didn’t exist, we’d pray for someone to invent them,
And on the other side of the fence, I’m sure the folks at Coke would say that
Nothing contributes as much to the present-day success of the Coca-Cola
Company than… Pepsi.”

Market Development:

Identifying new and developing markets for current products – market development – is another method both Pepsi and Coca-Cola are presently using to increase overall sales. While PepsiCo’s shift in advertising to a younger audience can be considered market penetration, it also exhibits qualities of market development. Teenage Americans have not traditionally been looked at as a powerful consumer group until recent years. Identifying this developing market, among other demographic ‘micro-markets,’ Pepsi has been able to penetrate areas that Coca- Cola has not.

The Coca-Cola Company and PepsiCo alike have taken note of the potential for expansion in the geographic markets of China, India, Philippines. CSD market development ties in very closely with both market penetration and product development strategies. Many CSD preferences are tied to societal and/or cultural preferences and existing alternatives. Sprite and 7-Up (non-cola CSDs) have been very successful in African-American markets. In 2001, PepsiCo further augmented their marketing strategy to break into this previously unaddressed micro market with a new non-cola CSD named Code Red.

Product Development:

While targeting the African-American market, PepsiCo determined that its Mountain Dew line could be augmented with a new cherry flavor (Code Red). “PepsiCo also hit the streets to go after the black and Hispanic audience with whom Mountain Dew has traditionally not done as well. Rap jingles starring Busta Rhymes and Fatman Scoop hit the airwaves, and cases of Code Red mysteriously began to appear at the doors of inner-city influencers.”

Revisiting the “Pepsi Challenge” from the 1980’s and 1990’s, we see a larger attempt to increase market share with product development. Prior to releasing Coca-Cola Classic, Coca- Cola attempted to diversify their product with the 1996 introduction of Coke II. Altering the formula of their best-selling CSD, the Coca-Cola Company attempted to make the product more appealing to consumers. Coke II was very poorly received, and Coca-Cola’s attempt at product diversification failed with thousands of consumer complaints about the new formula.

In the brand-loyal CSD market, product modification is rarely well- received, as exemplified by the failure of colorless colas and the poor performance of recently released lemon-flavored colas.

Diversification:

Starting up or acquiring businesses outside of current markets and products – diversification – is an excellent way to strengthen a company. Profits and revenues generated by secondary or even tertiary ventures can provide additional resources to strengthen a businesses’ primary class of products. However, as Kotler and Armstrong explain, “companies that diversify too broadly into unfamiliar products or industries can lose their market focus.”
PepsiCo was faced with this very situation in the mid-1990’s with their restaurant ventures.

PepsiCo was operating with over 400,000 employees worldwide, many of whom supported one of the three fast-food chains under Pepsi’s banner. The hot food division of PepsiCo brought in the most revenue of any of their existing divisions, but was the least profitable. In 1997, PepsiCo spun off their restaurant businesses as Tricon Global Restaurants, in a move to keep from becoming too over-diversified.

PepsiCo, valuing its stability through diversification, moved to acquire Quaker and SoBe in 2001.Quaker specializes in health foods and is the industry leader in non-carbonated sports drinks. SoBe is a world leader in health and new-age non-carbonated beverages. PepsiCo correctly identified the global demand for more non-carbonated ready-to- drink beverages, and was able to move swiftly to diversify their holdings. Gatorade, a sports drink acquired with the Quaker purchase, sold slightly over USD$ 2 Billion in the year 2000 – rivaling Pepsi’s competitor Coca-Cola. Coca-Cola does not show any sign of moving into markets other than ready-to consume beverages, but still offers a wide array of diversified beverage products. The 239 beverage brands that Coca- Cola produces constitute a major portion of beverages available to consumers worldwide, covering dozens of micro-markets. Unlike PepsiCo, Coca-Cola has a long history of success with international marketing efforts and business strategy. Thus, rather than competing with Coca-Cola on in the international beverage arena, PepsiCo has ensured longevity with alternate product offerings.

PEPSI TODAY

An Overview

PepsiCo Inc. is among the most successful consumer product companies in the world with annual revenues of $24 billion and approximately 140,000 employees. Some of PepsiCo’s brand names are nearly 100 years old but the corporation remains relatively young. PepsiCo Inc. was founded in 1965 through the merger of Pepsi-Cola Company and Frito-Lay Inc. PepsiCo divisions operate in two major domestic and international businesses: beverages and snack foods.

Through our divisions PepsiCo has achieved a leadership position in each of these business segments: we are world leaders in beverage bottling and we are the world’s largest producers of snack chips.

PepsiCo’s brand names are some of the best known and most respected in the world and our restaurants are named as favorites by millions of people. PepsiCo has achieved a continuing record of growth. This record is based on high standards of performance, distinctive competitive strategies which are superbly executed, the personal and professional integrity of our people, business practices and products.

Our overriding objective is to increase the value of our shareholders’ investment through integrated operating, investing and financing activities. Our strategy is to concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions within these businesses. These strategies are continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation’s success reflects our continuing commitment to growth and a focus on those businesses where we can drive our own growth and create opportunities.

PepsiCo’s beverage business consists of Pepsi-Cola North America and PepsiCo International.

Pepsi assumes responsibility for supplying the essential ingredients of a product and it assures the bottler of exclusive right of sale within their specified geographical franchise area. It works with supplier firms to assure the availability of quality packaging, merchandising, and other related equipment made to standard specifications. It provides advertising campaigns and media support. It creates suitable promotional campaigns and marketing strategies. It offers aid in personnel training for sales and production staff. It makes available quality control facilities and technicians. It develops a national publicity effort and offers aid in formulating local level community relations projects. And, in addition to performing these functions, Pepsi offers service through a large field force, including specialists in a number of technical and marketing skills.

The bottler has reciprocal obligations in connection with their franchise right. They agree to only use approved advertising and distribute a finished product of unvarying high quality, to use merchandising materials, and to market the product vigorously.

Today, there are more than 400 Pepsi-Cola Bottlers in the US and more than 600 internationally. The product is sold in approximately 200 countries and territories. The Company itself operates only a relatively small number of bottling facilities, principally in larger metropolitan markets.

PEPSICO INTERNATIONAL:

PepsiCo International (PCI) is PepsiCo’s international soft drink operation and includes the business of Seven-Up International. PepsiCo beverages are available in about 195 countries and territories.

PepsiCo began selling its products internationally in 1934. Operations grew rapidly beginning in the 1950’s. Today PBI accounts for about 20 percent of all soft drinks sold internationally.

PCI organization consists of three geographic business units, each with self-sufficient operations and broad local authority. The three units are:

– Pepsi-Cola Europe
– Pepsi-Cola Latin America
– Pepsi-Cola Asia
PCI beverages are produced by a combination of independent franchised bottlers, joint-venture bottling operations and company-owned bottling plants. PCI is the soft drink market leader in more than 50 countries and territories including Saudi Arabia, Venezuela, Russia, Pakistan, Hungary and Vietnam. Other key markets include Mexico, Saudi Arabia, Venezuela and Argentina. PI also focuses on high potential, underdeveloped markets, such as China and India. PI has also established operations in the key emerging markets of Eastern Europe, including Budapest, Warsaw, Prague and Moscow, where Pepsi-Cola was the first US consumer product to be marketed.

The division’s flagship product is Pepsi-Cola, with its brand extensions Pepsi Max, Pepsi Light, Caffeine Free Pepsi, Caffeine Free Pepsi Light, Diet Pepsi, Pepsi Twist, Pepsi Blue, Vanilla Pepsi, Pepsi X and Wild Cherry Pepsi. The division’s other major brands include Mountain Dew, 7UP, Diet 7UP, Mirinda and Teem. In all, PI offers dozens of soft drink brands in a variety of packages and sizes.

THE BUSINESS ENVIRONMENT:

Consumers:

Pepsi believe the main ‘drivers’ behind consumer behavior are value, variety, attitudes and convenience.

Competitors:

Pepsi’s direct competitor is Coca-Cola Amatil. The non-soft drink competitors are tea, coffee, water, energy drinks, sports drinks, milks, etc which are all consumed on beverage occasions. Pepsi aims to gain a greater share of these occasions.

The Marketing Mix:

Product:

Pepsi, Pepsi Light, Pepsi Twist, Pepsi Max, Pepsi Diet, Pepsi One, Pepsi Vanilla, Pepsi Blue, Pepsi Wild Cherry, 7UP, Diet 7UP, Caffeine Free Pepsi Light, Mountain Dew (including Diet, Caffeine Free, Code Red, and Live Wire flavors).

Price:

Pepsi is competitively priced to its major competitors, offering a better tasting product at a competitive price.
Promotion:

60% of the marketing funds are spent on advertising. Primarily TV advertising with radio, magazine, cinema and outdoor support. Other promotional items include: point of sale material, consumer premiums (e.g. clothing, caps, etc), sporting and concert sponsorships.

Place:

PAH/PI own the Pepsi brands. They sell the concentrate to CSA who manufactures and bottles the Pepsi products and distributes it to consumers. CSA distribute Pepsi via various channels e.g. major supermarket chains, smaller milk bars, restaurants and fast food outlets (KFC, Pizza Hut and Oporto). Pepsi also have refrigerated vending machines at various locations and workplaces.
Service the right pack size at the right price, in the right place at the right time.
SLOGANS
1981 – Pepsi’s Got Your Taste For Life!
1983 – Pepsi Now!
1984 – Pepsi, the Choice of a New Generation
1992 – Gotta Have It
1993 – Be Young, Have Fun, Drink Pepsi
1995 – Nothing else is a Pepsi
1999 – The Joy of Cola
2000 – The Joy of Pepsi
2002 – Ask for more
2003 – It’s the cola
2004 – Dare for more
2005- Dil Hai Tu Maango Aur

PEPSI INGREDIENTS:-

Water

At least 86% of soft drink is purified water. In the case of diet soft drinks water comprises around 96%.

Sweeteners

Such as sugar (sucrose from sugar cane) or non-nutritive sweeteners. Sugar is used in Pepsi, 7UP, Mountain Dew and Mirinda. The most popular and most widely non-nutritive sweetener used is Aspartame. NutraSweet is the registered trade name and it is used in Pepsi Light, Diet 7UP and Pepsi Max. Aspartame, being 200 times sweeter than sugar, is used in very small quantities. Other non-nutritive sweeteners permitted are acesulphame potassium, thaumatin, saccharin and cyclamate. Pepsi Max and Pepsi Light use a dual sweetener system, aspartame and acesulphame potassium. The latter is 300 times sweeter than sugar, requiring even less to sweeten the soft drink. Shelf life of the product is extended, as, unlike aspartame, acesulphame potassium does not lose its sweetness over time.

Flavors

Pepsi uses flavors to develop characteristic tastes associated with our beverages. These come from a variety of sources; natural, artificial and nature identical. They are usually derived from a number of ingredients used in special combinations. Examples of flavors used in the manufacture of soft drinks include natural flavorings from Kola nut, and fruit. Food acids and bittering agents such as citric, phosphoric acids and caffeine are also flavoring substances.

Our products and the flavors used in those products are safe and suitable, but they are proprietary.

Carbon Dioxide

Effervescence gives soft drinks their special bubbly appeal and is added

During production by injecting C02 into the product on the way to the filler.

Colors

Colors are added to Pepsi Cola products to enhance the esthetic appeal and appearance of products whether they are the typical brown of our colas or the yellows of Mountain Dew.

These may be both natural and artificial.

Natural colors or colors sourced from natural materials. Many countries have regulations that specify certain colors as natural. These colors are referred to as “natural colors.”
Synthetic (or artificial) colors. Internationally there are many colors that are accepted.

Preservatives

Certain preservatives are used in soft drinks to ensure microbial stability and prevent spoilage

PepsiCo Brands List:

Pepsi-Cola
Caffeine Free Pepsi
Diet Pepsi
Caffeine Free Diet Pepsi
Pepsi Twist (regular & diet)
Wild Cherry Pepsi
Pepsi Blue
Pepsi ONE
Pepsi Vanilla
Diet Mountain Dew
Mountain Dew Code Red
Diet Mountain Dew Code Red
Mountain Dew LiveWire
Mountain Dew Blueshock
Mountain Dew AMP energy drink
Mug
Sierra Mist (Regular & Diet)
Slice
Lipton Brisk (Partnership)
Lipton Iced Tea(Partnership)
Dole juices and juice drinks (License)
FruitWorks juice drinks
Aquafina purified drinking water
Frappuccino ready-to-drink coffee (Partnership)
Starbucks DoubleShot (Partnership)
SoBe juice drinks, dairy, and teas
Sobe energy drinks (No Fear and Adrenaline Rush) Outside North America
Mirinda
7UP (International)
Pepsi Limón
Kas
Teem
Pepsi Max
Pepsi Light
Fiesta
D&G (License)
Mandarin (License)
Radical Fruit

FUTURE PLANNING

The company operates through a well experienced, loyal and hardworking employees. The first and the most basic plan it to train them according to the changing technology and computerized environment, and satisfying their needs and requirements. Upgrading the plant structure and installation of the new machinery are other plans. The company is planning to increase its sales force and development in its infrastructure in the coming time period.

SHAMIM CO. (PVT.) LTD.

District Coverd by Shamim & Co.

Multan A Zone

Multan B Zone

Multan C Zone

Multan District

Multan Outskirts

Khanewal

Maisli

Vehari

Muzafar Garh

Leiah

D.G. Khan

Sahiwal

Okara

Bahawal Pur

Ahmad Pur

Bahawal Nagar

Haroonabad &

Rahim Yar Khan

As for as products are conserved, company is offering (under given) products in the market. The details are as under,

Now we are going to discuss the Stock Keeping Units (SKU’s).

Stock Keeping Units (SKU’s)

SSRB This stands for Single Serving Returnable Bottle (Regular)
We are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group.

LRB This stands for “Liter Returnable Bottle” this includes Pepsi, Mirinda & 7-Up. We are not offering Mountain Dew in this class.

Pet Bottle (1.5 Liter)
This includes Pepsi, Mirinda & 7-Up. This group also does not have Mountain Dew in their family.
Here Diet Pepsi & 7-Up are also available to enlarge the range of group.

NRB This stand for “Non Returnable Bottle”. It can also be called as “Deposable”
It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi & Diet 7-Up.

Cane Packing, we are offering cane packing of all that brands that are offered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.

Post Mix – This includes Fresh / Fountain. This group includes Pepsi, Mirinda, 7-Up & Mountain Dew. This facility is offered on “QSR” that stands for “Quick Serving Restaurants” and all those points where no of walk-in-customers in very huge with their short time stay at that point.

Pepsi Cola International is a large group covering KFC, Pizza Hut, Burger King, Lays Potato Chips & Aquafina (Mineral Water).

ORGANIZATION HIRARCHY:-

Managing Director

He is the owner of this company and final operational authority to manage all departments of the company. All department’s heads are responsible to report him all about their performances and matters.

General Manager Sales and Marketing

General Manager Sales and Marketing is responsible for the performance of his department and to achieve the objective assigned to him such as marketing, sales, distribution. To carry out his duties more efficiently he has two Divisional Managers, Four Regional Managers, & 18 Area Sales Managers.

General Manager Operation

He is responsible for the whole shipping. Workshop related activities to smooth on the factory operations without any hindrances.

General Manager Technical

He is unlike sales department performs key role as to manage production department producing quality products as per need of the sales department, quality control department also works under him.

General Manager Finance

Finance, Accounts, Audit and MIS departments work under his control. He is responsible to make major company financial policies to meet the needs of the each and every department regarding budgets etc.

Manager Research & Sale Information System (SIS)

Manager identify where your customers shop, you need to determine if there is room for you to compete within the market. To do this, you need to identify all competing or substitute products. Sophistication of this process will vary depending on where your customers shop. For those businesses whose customers shop within local markets, begin your research behind the wheel of your car. Conducting “Market Surveys” is a fairly inexpensive method to collect and examine the competition.
Distribution Channel:-

The company operates through a well-established network of a number of distributors. The company has two types of delivery systems i.e.

Direct delivery system

Indirect delivery system

The basic difference between the direct and the indirect delivery system is that in a direct distribution system, the company spends its own resources while in a indirect distribution, the dealers spends their own resources on all the factors which increased the sale. The company also has its depots in different cities. Which helps a lot in increasing its sale and directing the distribution system.

8 Steps of Pepsi Sales

Our company is very conscious about the development and growth of our employees especially the sales force. We have designed a 8 step process for proper guideline of our sales team just to make their sales calls effective and result oriented. There steps are as follows,

Preparation
Greeting
Stock Checking
Merchandising
Presentation
Order taking
Curb side de-briefing evaluation
Administration

PREPARATION

i. What are Objective
ii. What to do here
iii. How to do that

Simply where we want to go, & how to get our there.

GREETING

It includes greetings and hand-shake. Greet the customer by name & he will be delighted should be keep in mind of every person involved in sales.

STOCK CHECKING (Stock Availability Store Checking)

This includes all the good e is dealing in this will help us to know about his financial worth patented and clientage.

MERCHANDISING (Display)

Display of Visi Cooler
Display outside shop
Availability inside Deep Freezers

It is the most important job to be performed by our sales force.
The order of our product in display should be like this

Top cane packing
Pepsi, 7-Up, Mirinda and Mountain dew
Then

Non Returnable bottles
Then

Single serving returnable bottles
Then

Single serving returnable bottles (Regular)
Then

Liter returnable bottles & pet bottles on the floor of visi coolers

Every sales person should be caring about the display

PRESENTATION

Policy
Scheme
Product availability
Total sales tack

ORDER TAKING
Taking Order

CURB SIDE DE-BRIEFING
Evaluation

ADMINISTRATIONS

Cash
Empty
Sales figure entry
Infection of stock

Company desired to increase it’s market share from 70 % to 80 % or Above. This is only possible if we

Retain our exclusive point
Explore new points
Increase sales of points
Increase stock at mix points
Conversion of coke points
Elimination of B- Brands

SHAMIM & CO. OBJECTIVE:-

The major objective of the company is to produce and supply of highest quality, which confirms to both the national and international quality stands. The company is committed to provide maximum level of customer satisfaction.

DEPARTMENTS:-
Finance
Marketing
Publicity
Shipping
Store
Production
MIS
Audit
Clearance
Management accounts

Finance:-

Department of finance includes Banking and insurance which deals with providing assurance to the company assets from any damages or crises.
Department ensures that each and every valuable asset of the company is secured and providing all financial services to the company such as leasing activities and searching sources of finance.

Following are the list of assets which are secured by the banking and insurance department.

motor vehicle
machinery
stock
life insurance

Shamim and company is taking insurance services from the following insurance companies

Askari General Insurance Company (pvt) Ltd.
.Shaheen insurance company (pvt) Ltd.

Period of insurance:-

The assets of Shamim and company are insured for the period of one year during this period If there is any damage to the assets with in the limits of insurance agreement the Banking and Insurance can claim for payment of damage.

The process of insuring an asset is given in following steps

intimation:-

The banking and insurance department gives intimation to the insurance company for insuring any concerned asset all necessary documents are provided to the insurance company.

survey:-

After intimation received buy the insurance company it sends its surveyors to investigate about the asset being requested for insurance.
The investigation includes getting all facts about market value, cost and life of asset of the asset.

cover letter:-

After survey process is completed and insurance company is satisfied about the asset it issues a cover letter to the company witch includes all necessary information about premium, expiry date and other information needed to get asset insured and policy number is also allotted for further reference.

Premium payment receipt:-

After cover letter is received by the Banking and insurance department it has to pay the premium with in one month to the Insurance company. And when payment received by the insurance company it issues a receipt called PPR or premium payment receipt which is kept by Banking and insurance company and is used if there is any damage to asset being insured for claiming.
Leasing activities:

Banking and insurance department is also responsible for leasing activities the department takes leasing facilities from various financial institutions which provide leasing for certain limits and periods.
The company has leased many of its assets from financial institutions it some times sells and leases back its assets following are the financial institutions from which the company is receiving financial facilities.

Orix leasing
Muslim commercial Bank
Faysal Bank
Habib Bank

Documents:

Following are the major documents used in the banking and insurance department

Letter of Credit:

Letter of credit or L.C basic requirement when the company is importing raw materials or any other items for use.
The bank issue the letter of credit in favor of the company for assuring the exporter that if the company does not pay the bank will pay the amount of imported goods.

Cover Note:

Cover note is a document which is issued by insurance company when the concerned company asks for insuring any of its assets it contains basic information such as descriptions of items value of asset period of insurance.

MARKETING:-

Q. What is the promotion?
Promotion means to make an awareness of the product in consumer mind for its availability at certain place.
Q. Why you need promotion.
To make the exposure of product.
Q. How you can satisfy about your promotion
Its depend on the feed back of consumer. That how the consumer may perceive the promotion of product. If the feed back is positive
For Example: the company achieving is object for the promotion then the defined promotion successful otherwise company observe the drawbacks for the defined promotion In prove it and implement and the feed back process against starts, so it is a continues process till the time. The company may get the Targeted object
Q. What are the sources of promotion?
There are two source of promotion
Electronic
Print Media.
Personal Selling
Q. Which you preferred and why?
Both are important because they have relevant work
Q. How many types of promotion?
There are two types of promotion
Sales Promotion
Product Promotion
Q. How legislation effects on promotion?
Firstly we get approval from govt., for promotion (Price off) volume duration.
Q. Is there any ordinance or law for governing promotion?
Yes there is a promotion ordinance. All the policies are related with this law.
Q. How you defend your promotion against your competitors?
To make is more and more attractive for the customer before starting the promotion normally it is viewed that what sort of promotion activity may start different ideas are generated and then from these ideas A promotion is defined with its pros and corns.
Develop a Promotion Mix
Is based on customer
It may be of all natures
It may be for any male, female of any type (relevant to sex age).
Sales Promotion
Schemes of different nature
i.e.,
Price off scheme
Discount scheme.
Various prizes scheme (from) small-to-small & big to big).

Promotional activity Plan
A promotional activity plays a vital role to enhance sales. With this activities may be done to promote 7- UP and Miranda
In post mix this following are the objectives for promotional activities
To increase the sales of low volume outlets
To do product promotion
To develop the credibility of Pepsi products (Pepsi, Miranda) and 7UP
For promotional activities following prizes may be offered in schemes.
Cash prizes ranging from RS 5- 1000/=
T- shirts, caps, school Bags, Kit bags lunch boxes, bats
Wail man, Rest watch, cassettes/CD, Radios
Free COLD DRINK GLASS
Some bumper prize (Diamond ring, Rado watch, CD player. T.V. Refrigerator)

Promotional Timing
For the promotional activities below stated or the other activities may be donning in the months of March. April (starting of peak season) and September to November (sales decline season).
Promotional Target Market
For promotional activities low volume outlets, Key outlets, entertaining outlets may be preferred. This shall encourage outlets as well motivate.
Prizes distribution
Prizes may be given to the consumer as conveniently, it could be placed either at outlet premises or at factory
With the sport of these prizes the below stated promotional activities may be done.
Scratch the glass
Under this scheme screeching the hidden part of the glass may in hide prize.

Lucky draw
Under this scheme different small prizes with one-bumper prizes may be given to winner by making a lucky
Some other activities like PEPSI logo uniform may be provided to high selling outlets for their serving staff.
Some activates may be done in shape of parks tickets with PEPST printed over there. In parks various promotional activities could be done like discounted rate; free cold drinks etc at some selected park for a specific day.
SWOT Analysis
Strengths
Strong image of PEPSI in consumer’s mind
In time service of supplies and technical assistance
More installation of post mix machine
Weaknesses
No advertisement budgets for post mix.
No signage’s of post mix in the market
No promotional activities in post mix.
No availability of spare parts.
No proper workshop for post mix.
Opportunities
Opening of new outlets
Strong consumer commitment with Pepsi.
Threats
Coca- Cola is on its way to get market share

Publicity:-

Definition:

Publicity is a non-paid for communication of information about the organization or product generally in some media form. At a large organization generating favorable publicity is usually the job of public relations director. In smaller companies publicity can be the job of marketers the owner and other employees. Indeed in a quality focused organization publicity presenting a positive image of all employees. Because it is non paid and usually reported by media as news publicity carries a lot of weight with the general public.

Difference between Publicity & Advertising

Public relation practitioners have a different approach to the media than do advertisers. Whenever possible they avid purchasing time or space to communicate messages. Instead they seek to persuade media gatekeepers to carry their information. These gatekeepers include writers, producers, editors, talk show coordinators and newscasters. This type of public relations labeled publicity and is characterized as cost free because there are no direct media costs. The credibility of publicity typically is much higher than advertising. I.e., if we tell you our product is great you may well be skeptical. But if an independent objective third party says on the evening news that our product is great you are more likely to believe it.

Types of Publicity

Publicity comes in many forms. The most common are news stories and public service announcements.
News stories- initiated by the media themselves allows the marketer little of if any control over the message.
Public service announcements space or time donated by media to nonprofit organization for socially responsible message
Generating publicity

Marketers generate news stories in whatever ways are likely to attract favorable media coverage. The simplest approach is to circulate press releases. Marketers may also host’s news conference4s and stage attention getting events.

Press releases
A press release in an article written by company members and distributed to the media. A press release is a like a mini-news stories. It provides the media with information about the product or organization.
A press release gives the marketer sum control over news coverage by allowing the marketer to decide when to make an announcement and what information to include. In preparing a press release the following tips can be helpful.
Keep it short.
Use clear concise language
Polish up the lead
Cite major facts
Include the name and phone number of the person who can be contacted to verify the story.

News conferences

The marketer invites reporters to the news conference and usually provides them with advanced information. A spokesperson for the organization may read a prepared statement and answer the question from the media men. But there is no guarantee that media will attend or ask the question that he spokesperson wants to answer.
Activities and events

To draw attention on its tenth anniversary a law firm in Orlando commissioned to photographers to create photos celebrating 20 local companies, 10 of which where the law firm’s clients. Not only did the resulting exhibit receive favorable publicity in the local press, but also the local historical museum added the photos in its collection.
As in this example the key is to create events that are some how favorable linked to the organization or its products. “Thus there are as many ways to generate publicity as there are ideas in the mind of marketer

Pepsi Takes new twist’ on Cola

Pepsi Twist, the great Taste of Pepsi with Lemon, enters selected markets in the United States PURCHASE, NY, June7,2001 – Complementing the grit taste of Pepsi with a twist of lemon, Pepsi-cola company is introducing a refreshing new product called “Pepsi Twist. “Regular and diet versions of the crisp new cola now are entering retail outlets in selected US markets.
“Consumers have been telling us they’re looking for something extra in their soft drink options, “said Dave Berwick, vice president of carbonated brands for Pepsi-Cola north America. “We know that nationally more people prefer the taste of Pepsi. With Pepsi Twist, we’re dialing up the refreshment possibilities while focusing on the bigger picture of expanding flavor variety among colas.”
Pepsi Twist was tested as a summertime-only proposition last year in Minnesota and Texas, where it met with tremendous consumer response, boosting total Pepsi trademark volume, display inventory and awareness
Its expanded availability this summer covers about a third of the country. Predominantly the central United States. Pepsi twist is being distributed in a wide range of packages wherever Pepsi products are sold in those markets
Dedicate television, radio and point-of-purchase ads are supporting the rollout of Pepsi twist where available. An introductory TV spot is set in a zoo on a scorching summer afternoon. It’s so hot even the penguins take extraordinary measures of stay cool. Created by Pepsi’s longtime advertising agency, BBDO New York, the humorous new commercial invites consumers to try “A New Twist on refreshment.”
Purchase. NY – based Pepsi-cola company is the global beverage division of PepsiCo, inc. in addition to Pepsi Twist, is brands in the United states include Pepsi, diet Pepsi. Pepsi ONE, mountain dew, Mountain Dew code red, wild cherry Pepsi, sierra Mist, Mug, Slice, Aquarian, Fruit works, Doe single-server Julces and So Be. The company also makes and markets category-leading iced teas and coffees, respectively via joint ventures with Lipton and Starbucks.
Pepsi-Cola’s culture is informal and entrepreneurial. Our people are empowered to make the decisions necessary to grow the business. We seek to achieve outstanding results through innovation, long term partnerships, and an open work environment that respects the individual and promotes personal and professional growth
Pepsi-cola products account for about one-third of the U.S. soft drink market. Brands include Pepsi; diet Pepsi, Pepsi One, mountain dew slice, Mug Root Beer, Aquarian and All Sport Through the Pepsi/Lipton tea Partnership. A joint venture of Pepsi-Cola North America and Lipton, we are the leader in the ready-to –drink tea market. In addition, we virtually created the ready-to-drink coffee category with the introduction of frappuccino through our joint venture with Starbucks Corporation.
Pepsi-Cola North America (PCNA) manufactures Pepsi-Cola beverage concentrates and sells them to bottlers in the United States and Canada. We develop the national marketing, promotion and advertising programs that support our brands and generate new products and packaging. Pepsi-cola people coordinate selling efforts for national fountain, supermarket and mass merchandising accounts. Whether it’s a new package or a new computer application, our goal is the same meeting customer needs.

SHIPPING DEPARTMENT

Shipping is a very critical area for any beverage organization. It serves the role of coordinator or middleman between production and sales. Ensuring appropriate quantity and on time availability of empty & liquid stock is utmost important. Any malfunction in empty receiving, storage, supply to plants, liquid stock and distribution directly affects sales. This is a complete chain or cycle and any weak link, bottle neck or disturbance will slowdown the whole operations.
Shipping department has following main functions.

RECEIVING & STORING NEW OR USED EMPTY

New empty is purchased from Pakistani or foreign suppliers as required. Management of production, shipping and procurement takes the decision of when, from where and in what quantity to buy new empty.

After approval, the purchased lot is identified with quality control passed stickers.
Consignment is unloaded at the empty godown.
Empties are transferred in cases manually and inspected for breakage.
Cases are transferred to plant as per requirement on empty movement slip.
Empty incharge does, stock taking and maintain daily empty stock physical report. Shipping department also receives used empty from dealers, distributors, salesman etc.
Dealer/Salesman arranges the return of empties from market as per contract.
On arrival of vehicle, dealer/salesman records entry (detail of empty) on gate register. A token # is issued to every vehicle.
Shipping staff unloads vehicle on the token number. Empty incharge checks then for breakage and they are sorted out physically in standard, junior, liter sizes and put into cases brand and size wise.
Empty incharge prepares empty slip. Empty slip has an office copy and three other copies at factory one copy goes to MIS, other is for shift incharge at DP godown and the third is for gate office.
Gate office reconciles the copy of empty slip with initial entry.
Gate register has two parts, one is for gate entry and the other is shipping received. Details of empty slip must match with the earlier gate entry otherwise empty incharge & shift incharge is informed.
SUPPLY OF EMPTY TO PLANTS

Shipping department has two godowns for empty storage. These are godown No.1, No.2

PEPSI TOWN

Due to shortage of space in godown # I, empty is unloaded at godown # 2 or sent to PEPSI town. This empty is returned when storage space becomes available at godown # I. Empty is supplied to plant when required by production people in specific quantity. the delivery is through forklifts.

Daily production report.

Report Product Loss Dirty Return To

Sign of production office

LIQUID STOCK & DISTRIBUTION

Plant RG I Excise DP Distribution

Clearance Godown

& payment

From DP godown liquid stock is issued to three main parties.

For the base market salesman directly take load from factory godown. At the end of the day, they return the empty and deposit daily cash.
SHAMIM & CO. has five depots to ensure smooth, regular supply and stock maintenance in other cities covering whole franchise area. The depots are treated like distributor /dealers. Shipping, sales and MIS staff works in depots. Trucks are made available by the company on contract to supply liquid and return empty frame depots settlement sheet of depots in prepared and cleared by the transfer of cash from dealer’s account to company accounts.
Some dealers whose area is not base or under any depot’s range also take load directly from factory and clear their settlement sheet by cash payment.

The procedure for all three types of parties is same. The salesman / drives deposits empty slip to MIS computer operator. Liquid slip is issued to the salesman on which the quantity, size and brands are specified. Vehicle is loaded in the DP godown monitored cleared by stock incharge.

FINISHED GOODS STORAGE

Finished goods storage should be secured against sunlight, rainfall, moisture and other intimidation.

Issued on FIFO (first in, first out) basis via validity of production dates. It ensures that product is not expired, bad taste and visually unattractive.
Shift wise record of daily transactions is maintained.
These are physical stock taking for physical but not for expiry dates.

HANDLING & PACKAGING

Forklifts are used for transferring FG shells I cases from production area to shipping hall or not delivery ducks to ensure product do no get damaged.

All Pepsi Cola carbonated soft drinks are packed in glass/PET bottles or post mix tanks. This is called primary packaging. Filled glass/PET bottles are further secured by means of plastic or wooden shells/cases called secondary packaging.

PROCEDURE OF EMPTY & LIQUID IN/OUT

Empty IN Liquid
¶1 Stocktaking of empty at the beginning Of shift (copy)
¶2 Empty unloading
¶3 Checking for empty slips to MIS,
¶4 Dealer and an office copy
¶5 Addition of new arrival in copy Stocktaking in the morning and entry on Liquid Received and Issued form Full in and liquid receive from SHAMIM & CO. Is added on the form.

Empty Out Liquid
¶6 Empty send to SHAMIM & CO. on New and Others Empty Slips.
¶7 The amount is subtracted from copy MIS issues liquid slip

Liquid is loaded on the sales vehicle according to liquid
Slip
Minus the amount from Liquid Received and Issue form

RESPONSIBILITIES OF DEPOT INCHARGE

Monitoring of empty and stock in charges
Maintenance of shipping records and documents
Reconciling physical stock with MIS reports
Posting on balance sheet register
Sending daily stock report and dealer wise sales report to factory
Receiving bank slips from dealers
Clearance of depot’s settlement sheet
Transfer of cash to friends agency account
Maintenance of stock FIFO system

During my visit to depot, I studied depot operations and

The job of stock incharge.
Performed the job of empty incharge.

Worked on the seat of shift incharge.

Drew liquid laws arrangement, Depot layout and time study of loading & unloading of vehicles.

OBSERVATION AND SUGGESTIONS

Extremely poor situation condition at godown # 2.

Dirty empty washing in godown # 2 is with HC1. Which is very hazardous to the people working there is well as it can cause problems when empty is filled.

It is a very difficult task to manage vehicles parking at unloading pad, providing way to forklifts transferring empty to the plants, and maintaining lanes properly. Trunks and other vehicles have to wait for hour in queue for their term.

Environmental conditions are not good. Shipping staff and labour has to work whole day in sales vehicles and forklift’s. It causes health problem for them liquid is supplied to depots based on daily sales and current stock position. But many times they receive unneeded liquid.

No financial or statistical technique is used to calculate what is appropriate stock level in a depot, when liquid should be sent and in what quantity.

Pepsi town is a big land area. Where a huge stock of empty is lying.

Empty should be kept under shelter to protect against weather. There is no proper arrangement of empties. There should be kept in an ordered and countable way.

Breakage, rejected empty, TIN packs and other useless material must be sale out by getting maximum price.

The job of empty incharge, stock incharge, shift incharge is very demanding. It requires mental ability, efficiency, physical fitness, ability to manage people and space and responsibility. They are paid low as compared to the people of same rank in other departments.

Shamim & Co. announces two best employee of the month awards each month from production and service sector. Production sector includes production and quality control department while service sector includes shipping, Admin, procurement & stress, MIS, cash and accounts department. This award is won by an empty incharge of shipping from service sector. Shipping is a large department where 250/­300 people work. There should be a separate best employer of the month award for shipping. The jobs of shipping staff are more physically & mentally demanding. It will motivate and help them to some out of the complex that shipping is an ignored part of the organization.

Shipping department is working is bounded capacity in terms of storage space and tuff conditions.
However they are reducing breakage, rejection and other losses year by year and supplied by following figures.

COMPARATIVE EMPTIES LOSSES

Description 2001 2002 2003 2004
Sales breakage 8,695
0.16% 13,562
0.17% 25,766
0.25% 35,654
0.32%
By order breakage 15,462
0.30% 28,418
0.35% 19,957
0.20% 24,325
0.25%
Shipping breakage 2,659
0.50% 2,847
0.35% 4,029
0.040% 6843
0.35%
Lifter breakage 123
0.002% 198
0.002% 206
0.002% 240
0.005%
Short in shipping
Depot loss 2,583
0.050% 2,052
0.025% 2,587
0.026% 2,873
0.029%
Reject by 5,591 6,876 7,044 9,137
Production 0. 10% 0.08% 0.07% 0.09%
Short received by production 1 1 32 18 28
Total losses 54,600
1.32% 79,880
1.03% 97,770
0.98% 79,072
1.03%

QUALITY CONTROL

Quality control department is responsible for following functions

* Water treatment (for bottle filling & washing)

* Syrup making (pasteurization room)

* Calibration

Laboratory equipment’s
Production equipment’s

o Incoming raw material testing

o In process testing

o Finished goods testing

o Market complaints handling

Market rejections
Customer rejections
Trade sampling

o Quality testing of CO2 plant and Boiler

WATER TREATMENT

Water is the main ingredient of the beverage product. Raw water is treated so as to make it free of all impurities and use in the process.

WATER TESTS

Water Testing 2P-M Indicator Method:

The purpose of “2P-M” or ” A ” alkalinity test is to verify that water treatment plant is operating correctly and final treated water for processing conforms to standards. High alkalinity leads to undesirable effects. The frequency of the test is after every half-hullr.

Total Dissolved Salts Testing In Water:

The purpose is to provide rapid, indirect evaluation of the total dissolved salts in a water sample. The level of total dissolved salts is a useful measure to gauge the overall consistency of the mineral contents in the water, which ultimately effect the quality of beverage. The frequency of the test is after every four hours.

Water Test Chlorine Residual:

Chlorine “residual” is the amount of chlorine that remains after the natural chlorine demand of the water has been satisfied. Two fold purpose of the test is:

Where chlorine is necessary , to demonstrate that the level of chlorine present is adequate for water oxidation & disinfections purposes &

Where chlorine is prohibited, to confirm that it is absent.

The frequency of test for water treatment is after an hour and for washer final rinse is once in a shift.

Taste, Odor And Appearance: Treated Water:

The purpose of this test is to provide a rapid, gross evaluation of major defects in treated water for syrup & beverage making. In this test, the taste, odor and appearance of treated water samples are assessed hourly.

Water Hardness Test:

The hardness in the water will affect the beverage quality as well as produce scale in washers, boilers etc. water hardness is gradual decrease in the tendency of water to form foam due to presence of impurities like chlorides, soleplates etc.

PRODUCTION

Bottles Washing Plant:

In the plant, syrup (from syrup tanks) and water (from water treatment) is mixed at a specific ratio called flow mix. The mixture then moves to carbo cooler where carbonation of product i.e. absorption of CO2 in the syrup at low temperature is done. It then moves to filler where product is filled in empty bottles and crown caps are put on it. The final product moves towards packing machine through conveyer however most of the time bottles are packed into cases manually.

CO2 (Carbon Dioxide) plant:

CO2 assures the product a measure of added sanitary protection and greater shelf life. CO2 gas in addition to product carbonation, contributes to the production process itself by:

Displacing air from water and product during processing.

Supplying counter pressure needs for some filler bowls.

CO2 enhances both beverage’s taste and appearance. Carbon Dioxide imparts a pungent, slightly acidic taste to the finished product as well as creating greater eye appeal. Each individual product should be carbonated to a level most suited for that flavor.

IN PROCESS TESTING

BRIX INVERSION TEST

The purpose is to break the sugar molecule into simple molecule of glucose and fructose, Inversion is performed to confirm on-line brix target .the test is taken after an hour of starting tank on production line.

FILL HEIGHT TEST

The purpose of fill height measurement is to verify that containers are consistently filled to the correct level as established depending upon package size. Fill height is the distance from the top of bottle to the meniscus of the liquid.

BRIX BY HYDROMETER TEST

The purpose is to measure by weight, the percent solids of sugar in simple syrup, finished syrup, control drinks and final beverage. Brix is defined as by weight percent solids of sugar.

pH TESTING

pH scale indicates the amount of acidity or alkalinity. pH is measured for Raw water, treated water, control drink, finished beverage, T.A. testing and incoming raw material. The purpose of the test is to define the line Brix. This also helps in predicting the sensory attributes of the beverage.

TITRATABLE ACIDITY TEST

The purpose of the test is to measure the acidity level in the test sample.

INCOMING RAW MATERIAL TESTING

Sodium hydroxide (Caustic Soda) %purity test
Processing material calcium chloride test
Conductivity Ash in granular sugar by conductivity meter:

The purpose is to test the incoming sugar for its ash contents in order to define quality. Sugar ash is primary indicator of sugar sensory performance in a beverage. It is comprised of organic and in organic salts left over from the refining process. The sugar is used in syrup making.

Processing Materials Ferrous Sulfate Test:

The chemical is used in syrup water treatment.

Processing Materials Activated Granular Carbon Test :

The chemical is used in syrup making and water treatment.
Crown Corks/Caps Inspection/ Attribute Analysis:

The purpose is to ensure that incoming lot of crown corks/caps fulfills the appearance requirement and free from defects. Crown caps are used for packing (sealing) of bottles after filling. Crowns and closures should match supplier shipment label and purchase order. The characteristics considered in the analysis are outside printing, inside printing, color, shell or liner flash, cracks, band etc.

Glass Bottles Inspection/ Attribute Analysis:

The purpose is to identify the visual defects effecting the beverage quality in the incoming glass. The defects are categorized as following. Very critical defects: Any defect dangerous for personnel.

Critical Defects: The defects that result in hazardous or unsafe conditions for smug, maintaining or depending upon the product. These could be Struck glass, Loose glass, False bottoms, Bird, Swings. Major defects: The defect likely to result in failure or reduce materially the usability of the product for intended purpose. The defects are Cracks, Chocked necks, Bent neck, Stones over 1.6mm (1/16 inch) etc. Minor defects: a minor defect is departure from established standards having little bearing on the effective use. These could be Brush marks, Seeds, Birty molds, Dirty finish etc.

HYDRATED LIME TEST

Hydrated lime is used in water treatment ( Reaction tank).

Taste, Odor & Appearance Test: Granular Sugar:

It is granular sugar test for its sensory attributes for consignment acceptance or rejection for every delivery.

CO2 purity test: CO2 used in Carbo cooler for absorption.
Chlorine (sodium hypo chlorite) test: Used in water treatment.

Post Mix tanks inspection:

Post Mix is undiluted fountain syrup that is delivered to retailers in transfer tanks. The inspection is performed before filling new or market returned tanks. A form is filled with the following format

Tank# Product Appearance Pre-inspection
O-ring Safety
Wolves Washing Filling Performed

Post Mix tanks washing:

It is in order to eliminate the chances of contamination. The steps are . Rinse with treated water

Clean with detergent
Rinse with treated water
Sanitize with chlorine
Rinse with treated water
Sanitize with steam

CALIBRATION

The calibration ensures that the equipment is fit for its intended use. Calibration is very integral and critical because instruments are eyes into the process and if the are not working properly, the process may produce unexpected or undesired results.

PRESSURE GAUGE CALIBRATION

The purpose is to test the non-existence of pressure difference & note if difference exists.

HYDROMETER CALIBRATION

The purpose is to test the non-existence in Brix reading and note if difference existed.

THERMOMETER CALIBRATION

To assure that thermometers are properly tested for their exact temperature reading. The calibration is for:

o Dial thermometers for washers
o Mercury/ Alcohol thermometers for laboratory testing

pH meter model H18424 calibration
pH meter model H8314 calibration
Calibration for TDS meter
Conductivity meter calibration
Refract meter calibration
Incubator calibration
Syrup tanks calibration: to get actual syrup volumes.
Temperature gauge: to test their exact temperature.
Pressure gauge calibration
Hand refract meter

SUGGESTIONS

In the production hall, very concerned person must use masks, gloves and safety glasses.
Earplugs should be provided to the people working in the production hall.
Proper sitting room should be provided to CO2 supervisor to keep the spare parts, tools and documents safely.
Labor should wear neat and clean uniform.
Proper arrangement should be for draining
Many under 18 age boys are working in production.
PCI QUALITY RATING

PCI collects product samples from market, tests them in their labs against standards, sends monthly test results summary to their franchisers and allots rating (colors) to franchisers after every three months. The PCI Operations Director – Quality Systems for Middle East, North Africa & Pakistan sends rating of 44 factories including SHAMIM & CO.. The color rating is based on following criteria.

Color Rating Previous New

Sensory- Ana~cal Sensory Analytical
Red < 70 % < 80 % < 70 % < 85 %
Orange < 70 % > 80 % < 70 % > 85 %
> 70 % < 80 % > 70 % < 85 %
Yellow 70 – 85 % > 80 % 70- 85 % > 85 % ­
> 85 % 80- 90 % > 85 % 85 – 90 %
Green > 85 % > 90 % > 85 % > 90 %

Green both Sensory/ Analytical good

Yellow Sensory Satisfactory/Analytically good
Or
Sensory good/ Analytically satisfactory

Orange Sensory unsatisfactory/ Analytically satisfactory
Or
Sensory satisfactory/ Analytically unsatisfactory

Red Both Sensory/ Analytically unsatisfactory

SHAMIM & CO. has been in yellow color after the standard percentage is Increased.
Management Information System (MIS)

In today’s fast moving business environment, organizations are rapidly moving towards computerization and information systems.

In this era of rapid of frequent changes, it provides current, reliable and accurate information to the management. This information is very useful in decision making. Information systems are generally defined as the system which provide regular and current information to management for decision making.

MIS department of Shamim & Co. is playing a vital role in this regard. The department is working with a small setup & satisfying the information requirements the organization with a smart staff and developed setup, the department has eliminated much work load, paper work and saved a lot previous time.

The software system have two basic parts and these are developed in some programming language. The post important part of any information system is database. The database is the basic structure of data and defines how data is organized, stored and retired from memory. The database operates at the back end. At the front end, data is entered and retired through input screens.

The MIS department is currently performing its day-to-day operations as well as involved in software development. It also provide technical assistance and training to other departments. At the time oracle 8.0 is in execution. All computer in the department are networked by LAN (local area network) the department has licensed software working.

The following systems are working in the department.

Plant Efficiency System:

The system is designed to keep current information about what is going on in production & plants. The system is helpful in getting production figures and reports about line utilization, line efficiency, mechanical efficiency, employee code, name, basic salary, allowances, tax, net pay and any other adjustments supplied by time office.

Sales & Distribution System:

The most comprehensive system of MIS is sales and distribution system. It incorporates

Sales system
Cash system
Shipping system
Post mix system

The basic input of this system is empties slip, liquid out slip, full in slip by order sips. empty short slip, the reports of the system are

load report ( dealer wise, depot wise )
settlement sheet ( dealer wise, depot wise )
Shipping shift summary .
Daily liquid out report.
Pending report.
Agent wise load out summary.
Agent wise sales summary .
District wise sales summary .
Computerize sales statements
(monthly, semi annually, annually)
Cash report

Filled inspection, breakage, actual production, paid time, stoppage, production time etc.

Excise And Sales Tax System:

Shamim & Co. is a regular tax payer of govt. of Pakistan. it pays excise and sales tax according to its production and sales. the system is developed to keep complete record of the tax transactions. stock of the product at the RG I is maintained after production. the stock is moved to DP (duty paid) godown after its clearance by excise inspector and payment of 15 % tax. at RG I, closing stock of a day is opening RG I stock plus day’s production and minus tax clearance.

Payroll System:

There is separate payroll system for Shamim & Co. and Friend’s Agency. The output of the system is pay slips and payroll report at the end of month. Payroll report incorporates.

All these reports are extremely important in the day-to-day operations of the above­mentioned departments. In addition, customized reports can be obtained as required. The system is implemented at each depot as well.

Market Research & Sale Information System (SIS):

Market Research & SIS is a very strong department, aimed to keep current record of each & every outlet of the franchise. Through this system, management can come to know

Market Share
Name & address of each outlet. T.O.T details
Publicity position
Discount verification

The system is designed in such a way that reports can be obtained about outlets:

Distributor & area wise
Route wise
District wise

The system is useful in accessing market & investment position in each area.

Market Share:
Research Assistant Manager (Saeed Bhutta) analysis is a proprietary methodology developed to help share determine whether their sale should go the market,& new competitive products in this market. This analysis allows research supervisor to go into the market, identify the components that establish market share, and determine which of those like availability, Chiller, Empty stock in order to improve their share position.
Research supervisor analysis the market & visit the shops, they analysis and click’s on there checking share format after the completion of sample size, they come back and submit these checking format to the Computer Section. Here information feed in the computer program and generate the result in the form of Share Summary.

Define the market
Before creating strategies, you need to define the marketplace in which you compete and create lists of your key competitors and the various channels serving your market.
Segment the market
The first step in creating “take share” strategies is to segment the market based upon the buying behavior of your customers. The market segments you choose must satisfy market criteria.
Market category
– Main
– Side
– Village
– Captive
Main Market – means main road, high volume market, wagon stands, commercial area.
Side Market – means colonies, mohallah, entrails, links road, side road
Village Market – means village sides, small areas
Captive Market – means parks, cinema, canteen, institute, govt. offices, kutchary, courts.
Market Sample Size
– Main Market 45 % of Total Sample
– Side Market 30 % of Total Sample
– Village Market 25 % of Total Sample
Stock Base Share
– Availability
– Chiller
– Fresh Consumption
– Floor stock
Exclusivity Base Share
– Pepsi Exclusivity
– Coke Exclusivity
– Mix

SIS deals with Tools of Traders (TOT). T.O.T. means list of items available in a shop, which helps to sell our product conveniently on priority basis. It is one of the major investments being made by the company. T.O.T. management completely depends upon the Sales force. The factors to be considered are

Data collection about the sale, volume, growth, profitability, size and place of the shop

Record of all the T.O.T. given to the shopkeeper.

Deep Freezer
Visi Cooler
Ice Chest
Bottle Rack

Further plan for the injection of T.O.T.

Checking all the equipment time by time any removing their complaints

PUBLICITY MANAGEMENT

To promote the image of the company and its products, publicity is a major tool. Publicity plays an important role in the promoting the image in the consumer’s minds.

Publicity involves Banners, posters, signings, gifts and schemes. Publicity budget is spent by focusing the followings.

Location of the area.

Arranging the sources and requirements and making priority lists

Carefully arranging the publicity execution.

Suggestions: –

The future programs of the department is:

Networking with depots
Internet development within organization

There should be formal web site and e-mail accounts of employees in the organization. A small computer books library will help the staff to add their skills.

AUTO WORKSHOP

The function of auto workshop department is top provide repair, overhauling and maintenance services to the vehicles used in the organization. These vehicles include Mazda, Toyota, Hino, Suzuki, Honda and forklifts (Toyota, TCM) of different models and capacity. Total number of vehicles served by the auto workshop is about 140. the responsibility of auto workshop is to keep PEPSI fleet efficient, deendable and energetic. Different departments particularly shipping and sales use these vehicles. Vehicles outside # are mostly used by sales staff. In case of some major work, it comes to workshop however if there is nominal repair work, they have it done locally. The staff of the department consists of 20 persons including mechanics. Record keeper, supervisor and headed by auto0 workshop manager.

DOCUMENTS / REPORT IN THE DEPARTMENT:

Daily performance report:

Vehicle # Detail of work Visit outside work Job complete/Incomplete Name of mechanic Driver’s name Sign. Remarks

Monthly performance report of auto workshop:

Maintenance work Engine Complete overhauling Welding Fabricating Denting Painting Engineering work from local market Engine Oil changing Tier tube changing repair work Servicing & Greasing work Motorcycle repair work

Work order indicating defect, repair work and remarks and after repair a certificate showing that maintenance work is alright signed by the driver of the vehicle.

Work order for market.
Log book in each vehicle for each driver.

Gate pass

Store requisitions for transport spare parts and stationary. A small section of store working under main store is maintained in the workshop

THE DEPARTMENT HAS FOLLOWING SECTIONS

Electrocution section
Tire maintenance section (compressor) Body welding section
Service section
Tool room

WORKING PROCEDURE

For any repair work, the driver must fill a work order signed by his respective in charge. The work order is also necessary for cars and motorcycles.

The work order is refereed to record keeper who hands over to supervisor after entering in register and reports to work shop manager in case of accident.

The supervisor is responsible for assigning the job to mechanic by matching the type of work and his skills.

In case of some work required from market, supervisor himself goes with the vehicle or assigns one mechanic to monitor market work.

The driver signs the work order certificate after his complete satisfaction.

OBSERVATION / SUGGESTIONS

Standards are set for mobile oil change, air filter change, mileage etc. of different vehicles. The data needs to be maintained and regularly evaluated.

Specialized workers are needed to work on different parts of vehicle e.g. spring load, radiator etc. as well as for petrol and desile vehicles. Specialist mechanics demand higher pay. For this reason, department has to get services from market.

There has been no training for mechanics, they are learning only by time. Mechanics can acquire new skills and save expenditures by attending short courses as one diploma holder mechanic is praised by department head because of his ability to communicate and better understand problems.

Maintenance and smooth of vehicle is dependant upon driver’s understanding and care for the vehicle. There is no formal training for drivers as well.

Short training camps should be arranged by the department conducted by engineers of the companies/dealers from where SHAMIM & CO. purchases vehicles.

PROCUREMENT & STORES

The department is responsible for all the purchases (including raw material), storage and issue of materials to various departments.

SUPPLIER SELECTION

Selection of right supplier is an important job being performed by the department. Selection criteria differs from one category to another category .
CRITICAL

These items are very much sensitive and one has to be cautious about making final decision about suppliers, in SHAMIM & CO. following factors are taken into consideration while selecting supplier for these items

Past performance record
PCI approved suppliers
Site audit
Self assessment through questionnaire
Product inspection and testing
Compliance by any appropriate standards or specifications

TECHNICAL/GENERAL ITEMS

While selecting a supplier for technical and general item any of the following method is used.

Past performance record
Competitive price in market
Delivery requirement of Shamim & Co.
Availability of items in the market

Purchases can be divided easily into

RAW MATERIAL PURCHASES

For the raw material purchases, there is a list of suppliers approved by Production Manager, Quality Control Manager and Procurement Manager based on their product quality. The procedure is that product samples are tested in the laboratory and then after complete satisfaction of quality, supplier is approved and sends his quotation.
Shamim & Co. has approved supplier list for following materials

Concentrate Plastic shells
Sugar Activated carbon

Glass bottles Crown corks Closures Packing cartons Pet bottles

CO2 gas Hyflo super
Glass bottles Ferrous sulfate
Crown corks Caustic soda
Closures Bleaching liquid
Packing cartons Sodium chloride
Pet bottles Lime

There are raw material specifications and special instructions regarding:

Chemical properties
Physical properties
Packaging
Sampling details
Storage & handling

Production department sends monthly demand and quotations for the quantity net of current stock and wastage are invited.

Material requirement by Production dept.
Opening/closing stock adjustment by Stores
Material to be purchased by Procurement dept.

Some time purchase quantity decisions are made on the space available in the store. After the material is purchased and Gate checking, it is again send to quality laboratory by FIFO rule.

GENERAL PURCHASES

For the general purchases like stationary, technical parts, supplies etc issue requisition slip (in case required material is in the store) or purchase requisition slip ( in case required material is not in the store stock) signed by concerned department head is send to Procurement Manager and Purchasers of procurement department make the purchase.

Store has categorized material in four labels

Mechanical
General
Stationary
General Electric

The documents/forms/reports used/generated in the department are:

Purchase requisition slip
Purchase order
Receiving voucher
Ledger (posting on ledger)
Store return voucher
Internal gate pass
Temporary gate pass
Permanent gate pass
Daily activity report
Daily stock taking report
TOT report
SALES & MARKETING

Sale and marketing is the most important department of any beverage company. To maximize the sales and profit, this department should be proper planed and managed. Shamim Co. Pvt. has a very aggressive and hardworking Sales and marketing department. Due to its efforts the company has got the first position in sales in 1993 through out the Pakistan.

Following are the major contents of this department:

Marketing Development
Tactical analysis and routine planning of market strategies.
Competition activity monitoring
T.O.T. management
Publicity management
Time management

MARKET DEVELOPMENT

The first and the most basic job of the sales and marketing department is to plan, develop and make targets. And also to make strategies to achieve those targets and develop the market. The following major factors are considered in this respect.

Collection of all the data about each and every distributors/outlets, about its sale, volume, growth and exclusivity.

Finding the gaps in the market where there is a potential.

Finding the points where competitor is strong and hoe we can break this point.

Location of non traditional shops where potential is available for the beverage.

Different offers must be given to break the competitors point or win the mix point.

OUTLET

Outlets play an important role in strengthening the market. By monitoring them you can build your market, have their loyalty and increase your sale. Sales persons should continuously visit outlets, listen their complaints and satisfy their needs and requirements. They must have information about each and every outlet, its growth, volume and type business. Proper check must be maintained to get the feedback from the shopkeepers

Tactical Analysis & Routine Planning Of Market Strategies:

On the market side the sales people gather information and on the bases of these information they further plan and improve their strategies.

Checking of the designated area, its sale, volume and growth.
Calculation of share n brands and package wise
Calculation of daily sales achievements on monthly target basis
Location of the poor performance factors and analyzing their cause
Finding their solution and getting the approval for its execution.
Planning for a schedule for the designated area.
Visiting the area according to the plan and reporting it to the higher management

Competition Activity Monitoring

On the other hand a constant intention have been given to the competitors activities, strategies and offers. They have been compared with ours and updated according to the environment

Following are the key factors to be noted in respect of the competitor:

Nothing the competitors investments i.e. T.O.T., Publicity,
Discounting, Promotional schemes, empty management,
Cash credit, Vehicles injection (etc.)
Reporting to the higher authority.
Taking action to block the competitors activities and monitoring Our

SENSORY INDICES LEVELS MEASURES

Sensory measures means to check the quality and standards through the senses. The colour, taste, appearance and other specimens of the bottle, must be checked time by time so that the standards of the PCI may not doubted

EMPTY & LOAD MANAGEMENT

Empty management means full utilization of available empty at highest productive Trippage level within the franchise area.

There are two types of empty management i.e.

Empty management within distributors & within Salesman.

The sales and marketing department have to manage, plan and make strategies a about the distribution of empty whether it is on credit or cash. The department also has to handle and manage load. Whether it is on vehicles or shipping or distributors or at the depots level. At shipping level load management can be divided into

Package wise
Brand wise
Demand wise

HOW TO MANAGE THE EMPTY

Following are the steps which are necessary to manage the empty

Estimation of empty available (within shopkeeper)

Estimation of empty available ( within distributors )

Previous sales record of each specific area within distributors.

Trippage level tracking of each distributor for the last two years at least.
Estimation of sales volume growth for at least last three years

(Distributors or salesman rout)

Estimation of empty injection volume for at least three years

(Distributors or salesman rout)

Comparison of empty Trippage from the one to other distributors/salesman rout.
Factors causing poor Trippage

Factors involved causing hyper Trippage.

Empty plan (Forecasting) based on the previous years Trippage

Level & Percentage increase of empty injection.

TIME MANAGEMENT

Time management is the most important factor especially in a Beverage industry, because it is wholly dependent on Sales and Marketing Department. And without proper management of time this department cannot run. Following are the key factors which are to be considered necessary for the management of time:

Drop size of a specific area.

Tonnage of the vehicle for that specific area.

Total operational time management

Idle time monitoring and elimination.

Calculation of outlet knock time.

Calculation of available knock time for each outlet of a specific area.

Define and ideal knock time for an outlet.

Setting of a comprehensive plan, by considering all the above factors

EXCISE DEPARTMENT

Shamim & Co is a regular taxpayer of excise and sales tax to govt. the procedure is that production per hour of each plant is counted and noted in cases and bottles. The excise duty and sales tax is calculated as per govt. rate. The liquid stock of RG 1 is moved to DP godown after clearance and daily deposit of sales tax. The company and all its dealers pay sales tax at the end of each month. Sales tax and excise duty is also paid on some raw material as sugar, crown caps, concentrate etc. the department maintains following documents

RG 1 register
RG2 register
AR 1 form
Daily production report (shift bases)
ACL register

The department is concerned with collector rate of central excise and sales tax, production department, shipping department and MIS department.

CASH DEPARTMENT

Cash department does cash handling (collection and payment). The major part of cash collection is from dealers and salesman based on their settlement sheet and daily sales report. Cash payment is done on the vouchers issued by accounts department. Payments include employee’s pay, bills, allowances, procurement expenditures and day to day general expenses.

ACCOUNTS DEPARTMENT

The job of the department is to maintain books of accounts. There are following main activities of accounts.

Issuance of purchase vouchers for raw material, plant and machinery and general store items
Check payment of payroll to employees including wages, overtime, bonuses etc.
Handling of monthly tax statements.

Computerized general ledger system is working and shows the result of each transaction up to balance sheet and income/profit and loss statement.

POST MIX DEPARTMENT

The post mix department is responsible for installation, maintenance and filling of fountain fresh (post mix) machine in eight districts of Multan franchise

Dispensing is today’s “action package” carbonated soft drink in POST – MIX and PRE­MIX forms, coupled with compact, high volume, refrigerated dispensing equipment, represent convenience and increased profits for dealers and profit opportunities for the bottler. There has been a little growth in the POST-MIX / PRE-MIX dispensing area in the Pakistani Beverage Market until the 2004. But now it has grown a lot due to the following factors.

Pressure on retailers to improve selling methods and techniques. Rapid increases in the volume of soft drink consumption in outlets with storage remaining limited.

THE IMPORTANCE OF DISPENSING MARKET

Dispensing market varies from country to in size and types of out let. The title ON­ Premise identifies any out left where product can be purchased with or without food for consumption on or near the premises.

The On-Premise market is one of the most markets in a Bottlers franchise. Its importance in the continued growth and success of the Bottlers business cannot be under estimated in its effects on:

o Profitability
o Consumer awareness
o Consumer sampling
o Product Visibility
o Volume growth
o Chilled product sales
o Impact on take home sales

POST MIX MACHINE

Post Mix machine is U.S. made and it has following main components.

o Water bank
o Congesture
o Cooling system
o Walves
o Syrup tank(s)
o CO2 tank

Post Mix Department installs machine at any suitable place with the cash security of Rs, 30000. Along with Post Mix machine, they also provide counter, water tank, water filter(s), disposable glasses, disposable plates, machine maintenance and service. The cooling system is almost like refrigerator or fridge cooling system.

However gas cylinders are attached to the machine for gas mixing. Syrup and water mix-up happens in wolves at-4 C .So the customer gets fresh, cool product in no time. The water used in fountain fresh machines is acquired from locally available source, It is stored in water tank and filtered once, twice or thrice depending on the purity of the water. With one syrup tank of PEPSI, TEAM and 7-Up, equivalent of 19 cases standard bottle is obtained, While syrup cylinder of MIRINDA has the capacity of providing equivalent of 16 cases standard product.

Until now total 118 has been installed in different districts and approx. 114 are working while others needs repair. There is further demand of about 100 machine

POST-MIX SYSTEM

The syrup mixed with water and CO2 at the customer account. POST-MIX containers can be bifurcated in Transfer Tank.

The Post Mix system differs slightly in principle from the PRE-mix system. The difference is related to the way the finished beverage is produced for sale to the consumer. The bottle fill the beverage syrup into stainless steel tanks at production plant and transport the tanks to retail outlets. The operation of POST -MIX system is as follows.

Compressed CO2 Gas flows from the storage cylinder through gas a pressure regulator where it is reduced to the working pressure of the carbonator, then through a pressure relief valve and back flow check valve to a juncture where the CO2 line gets divided. One segment going to secondary regulators and the other to carbonators and the other to carbonator tanks.

The flow of CO2 from the secondary regulators goes to the syrup containers. Syrup flows from the containers to the refrigeration unit and then to the dispensing valve. The CO2 gas directed to the carbonator assembly enter a small capacity tank which contains potable water automatically controlled to a predetermined level in addition to the tank. Its safety valve, the carbonator assembly includes a motor driven water pump to force the potable water into the tank against the CO2 pressure. The carbonated water from the carbonator .

Connect dispenser to a separate outlet. Turn power switch ON. Thoroughly flush all incoming product lines before connecting them to the dispenser. Turn on the water supply and allow the carbonator to fill completely.

Lift relief valve ring until water flows from relief valve openings. Relief’s ring and allow closing.

Turn on CO2 gas and adjust regulator to 75 psi.

Activate a valve until pump starts. Close valve and allow pump to cycle. Dispense drinks from each valve to purge and remaining sanitizer from the syrup lines and establish quality carbonation in the carbonator .

TRANSFER TANKS

The most common packaging from for both PRE-MIX and Post Mix product is the Stainless Steel Tank. This tank comes as either a single entry or double entry system. Each has specific advantages and disadvantages. Both PRE-MIX and Post Mix product can be stored in either single or double entry system

DOUBLE ENTRY TANKS

Double entry tanks have separate gas inlet and liquid outlet plugs. The standard double entry tank size can hold 18 Liters of product. However the double entry tanks are also available in other sizes.

SINGLE ENTRY TANK

The single entry tank is generally made of stainless steel and can be obtained in different sizes. This tank is not commonly used for dispensing soft drinks. To date its use has been within the brewing industry.

TANK AND CYLINDER REQUIREMENT

One question the reader will need to ask is the ratio between tanks and cylinders per units purchased. The answer is dependent on these factors:

The length of distribution chains.
The sales volume per outlet.
The product Mix ( some flavors move faster than others )
Frequency of calls.
Control of stock levels.

EXAMPLE OF POST MIX TANK REQUIREMENT

One product tank contains the equivalent of 19 standard cases of 250 ml finished product, therefore an outlet selling 40 case per week would require the following minimum stock to cover a basic four flavor installation.
TANKS

Outlet Machine Stock 4 Tanks
Outlet Reserve Stock 1 Tanks
Factory Shipping Stock 3 Tanks
Factory Production Filling 2 Tanks Total: – 10 Tanks
CO2 CYLINDERS

Outlet Machine Stock 1 Cylinder
Outlet Reserve Stock 1 Cylinder
Factory Stock 1 Cylinder
Total: – 3 Cylinders

DISPENSING DEPARTMENT STRUCTURE

In a simple way, the department can be considered to have four main functions.

SALES

Security Deposit Receipt.
Legal Agreement papers.
Installation site sheet
Installation & pick up order .
Quality control functions.

SERVICE

Preventive maintenance card.
Wastage Record.
Complaints log.
Spares usage Record
Quality control & sanitation.
DELIVERY

Delivery Card.
Sales History Card Account Cash Record

WORKSHOP

Daily sale & stock report
Issue / Collection slip.
Future needs Technical Development.
Repair Section
Store Section

POST MIX SALES OFFICER RESPONSIBILITIES.

Customer Service.
Conducting Annual surveys of accounts.
Preparing a sales plan for growth in conjunction with the Post Mix Manager.
Grouping accounts into geographic routes for delivery
Helps in selection of sales man cum technicians.
New outlet development.
Existing outlet development.
Merchandising
Quality checking

OUTLET SELECTION

Dispensing equipment is very expensive and therefore every care must be taken to ensure that the outlet have proper annual yield. As with any installation of Post-Mix equipment, it is important to first undertake a site survey. Until this is done it is not possible to ascertain the equipment required. The points that need to be checked are:

1. Volume through put.
2. Type of unit required & space for product tanks
3. Construction, alteration and other details.
4. Water and electrical requirements.
5. General Details and deliveries.
6. Proper space for air circulation.
7. Dealer and staff are trained or not.
The machine is normally installed in parks, shopping centers, college canteens, ice-cream parlors, busy roads, burger comers etc. The department is having five vehicles for visits of each machine after every two days. Different routes are planned in various areas. With every route/vehicle, there is a technician, driver and helper. The purpose of the route is to replace empty syrup tank, cleaning and maintenance work of machine and resolve any complaint. Special routes are arranged in case of urgent complaint or immediate syrup tank requirement. The technician also performs the job of salesman. Cylinders are delivered on cash and it is responsibility of technician to collect cash and later submit it at cash office. During the route, they have to arrange their meal for which no allowance is given. Technician s get a commission of Rs. 2.50 per cylinder sale. Currently sales
Officer is incharge of the post mix department and performs his job as well.

Various forms/documents/reports used in the department are:

Post Mix installation/removal orders
Duty slip
Overtime register
Main store requisition
Daily complaint register
Daily technician report
Part/outlet wise sales report
Requisition for publicity
Daily post mix report
Individual technician files
Party wise profiles

SUGGESTIONS

Fountain fresh department is an area which requires much more attention. Though currently it is working with its capacity and covering five districts with a smart staff. The organization should take it as a SBU and concentrate on it because of

High expected growth
PEPSI has currently no competition in this area
No problem of empty
It does not requires a huge plant setup and works with simple setup and very low overhead
No chance of fake bottle

So the sales can be increased dramatically by better management and boosting up Post Mix department.

PROBLEMS

There is job dissatisfaction and very low motivation on the staff due to:

Low salary
Daily allowance has been eliminated
Overtime is rewarded in terms of holidays not in monetary terms. According to technicians, they normally do not get a chance of making allowed vacations due to workload so the extra holidays are of no use for them.
Higher positions are filled from outside, people within the department should be promoted to the chief technician and sales supervisor level.
Technicians perform the responsibility of salesman for which they get just Rs. 2.50 per cylinder that is very low.
Computer is present in the S.O. office but no one in the department is really qualified to get use of it.
Sales targets are set without the consent of staff.
Post Mix staff has no knowledge of ISO.

During the route riding, I observed following points

The key issue is proper and compatible combination of technician, helper and driver . these people should work as a team in the field and must possess the characteristics that make a team successful i.e. technical competence, trust —-.
The group should move with full preparation i.e. all required slips, necessary tools, tested equipment.
The vehicles must be fit and available on time. It is in their best interest and make their job safe, convenient and speedy.
The new machines are not available for installation. Used machines and counters make shopkeepers unhappy.
The behavior of the staff with shopkeepers is generally good. The outlet owners have the Post Mix office number complaints and the response is efficient.

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